3 ASX 200 shares smashing the benchmark this week

Investors have been piling into these three ASX 200 shares this week. But why?

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Key points

  • DroneShield, now part of the ASX 200, sees its shares surge as investors respond to its elevated visibility.
  • Lynas Rare Earths attracts investor interest due to geopolitical factors.
  • Iperionx leads with impressive gains following substantial funding from the US government.

As we approach the end of another eventful trading week, the S&P/ASX 200 Index (ASX: XJO) is up 0.2% since last Friday's close, with plenty of help from these three surging ASX 200 shares.

One is involved in drone defence technology.

One digs rare earths from the ground

And the third focuses on producing titanium products.

Which outperforming ASX 200 shares am I talking about?

I'm glad you asked!

ASX 200 shares racing higher this week

The first company racing ahead of the benchmark this week is DroneShield Ltd (ASX: DRO).

Shares in the drone defence company closed last Friday trading for $3.22. In afternoon trade today, shares are changing hands for $3.68 apiece.

That sees the ASX 200 share up 14.3% for the week. And it puts the DroneShield share price up an eye-popping 390.7% so far in 2025.

There was no fresh price-sensitive news out from the company this week. However, Monday marked the first day that DroneShield shares officially joined the ASX 200 Index.

Commenting on the inclusion in the benchmark Aussie index, DroneShield CEO Oleg Vornik said, "We believe this milestone will further enhance our visibility with institutional domestic and overseas investors and strengthen our platform for continued growth."

If this week's strong outperformance is any indication, Vornik looks to have gotten that right.

Moving on to the second ASX 200 share that's shooting the lights out this week, we have Lynas Rare Earths Ltd (ASX: LYC).

Shares in the rare earths miner closed last week trading for $14.63. At the time of writing, shares are trading for $16.84 each. This sees the Lynas share price up 15.1% for the week and 157.8% in 2025.

There was also no fresh price-sensitive news from Lynas this week. But the stock looks to be catching investor interest amid the West's ongoing pursuit to secure critical rare earths elements outside of China's control.

Which brings us to…

Leading the charge

The best-performing ASX 200 share on my list for this week is Iperionx Ltd (ASX: IPX).

Shares in the titanium products producer closed last Friday trading for $6.45. With just a few hours to go before today's closing bell, shares are changing hands for $7.76 apiece.

That puts the Iperionx share price up 20.3% over the week and sees shares up 41.0% in 2025.

Iperionx is up 6.9% in intraday trade today after the company reported that it has secured another US$25 million in funding from the United States Department of War. That brings its total US government funding awards to US$42.5 million.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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